Analysis: VIAB DWDP LRCX

In today's Daily Rundown, Jim discusses Viacom (VIAB) , DowDuPont (DWDP) , and what might happen to the market when Lyft begins trading. Also, he uses Lam Research (LRCX) as an example of what happens "behind the scenes" at Action Alerts PLUS and how the club acts as a teaching tool for portfolio management.

Katherine Ross: Good morning y'all, I'm Katherine Ross with the ActionAlertsPLUS. I'm here on the floor of the NYSE with Jim Cramer. Jim, let's talk about Viacom.

Jim Cramer: Sure.

Katherine Ross: What do you think? What do you think about this upgrade?

Jim Cramer: Yeah. Okay, here's a good example. Yesterday, I wanted to buy it, but we were restricted. So we tell people we like it. Our performance would be better if we could just go buy it, but we have restrictions. I still think it's a buy, but we can't buy it because it's got this window that is closed, and then I think something good is going to happen with Viacom. I think Viacom's going to merge with CBS, that's why we own it. They were waiting, I think for this last tranche, this fight with ATT to get in their bundle, and now I think they can merge the two and it'll be terrific. But we weren't allowed to buy it.

Katherine Ross: But members who are not restricted.

Jim Cramer: Well, this is why it's a club. Okay, it's a club because, if it were just a charitable trust, well, you're going to underperform. I'm willing to virtually guarantee under performance. I'll guarantee it. I can't do what I want to do. It's not a hedge fund, it's a teaching tool. The actual charitable trust cannot be measured by what we're offering members cause Viacom's a buy, and you can't buy it.

Katherine Ross: And I just want to be clear that Viacom was upgraded by Loop capital, I did not make that clear. So members [crosstalk 00:01:16]-

Jim Cramer: And I think that something good's going to happen there, and I wish we could buy more because I think it would really help us.

Katherine Ross: Let's talk about DowDuPont. Now, on Tuesday [crosstalk 00:01:24], they're spinning off Dow.

Jim Cramer: Yeah. Then it's going to have a high yield, be five and a half. They preannounce for a second time. Preannounce for the first time, shame on them. Preannounce the second time, shame on me. They had problem with their ag business because of bad weather, that's been shared by others in that business, so I get that. The last piece, the DuPont piece is actually on target. Jim Fitterling will be ringing the bell, he's the CEO of Dow.

Jim Cramer: That's a plastics company and they're raw cost went up, and they weren't able to pass on the cost to the final product. So therefore, the margins got hurt. They had an outage, but thoroughly sub optimal. The company has really screwed up, and I don't want to hear that the fates were against them. I have a ton of cyclical stocks that I follow that are doing well, Okay? This one's not one of them.

Jim Cramer: It was a mistake not to sell it all. Again, because we play with an open hand, I can tell you that we are often caught. We talked endlessly about it when it missed, so now we own it. We're going to ride it through, we're going to take the plastic, the Dow because it yields five and a half. Maybe things can get better there, Fitterling is a good manager.

Jim Cramer: The crop business isn't historically been a good business, but you know we screwed up. I didn't blow it all out, and the lesson there was that I had a huge gain, I got greedy and decided to wait for the spinoff, because Ed Breen has made more money doing the breakups, and I got greedy. And I should've just rang the register and I chose not to.

Katherine Ross: And pigs get slaughtered as you say.

Jim Cramer: Yes they do. I was a pig on Dow DuPont, and now I'm paying the price of embarrassment, and overall second guessing that doesn't help anyone.

Katherine Ross: And members should know though that your team is going to do a deep dive into DowDuPont.

Jim Cramer: Oh no, no. You will have unbelievable stuff, and it's going to be funny. I think that there are now people right here, right now who are saying at last, I can buy it. it's completely de-risked, and that's true. Okay, that's absolutely true. So we can't give up on it now, the time as Karen Cramer said, the time to give up on was it was at 70. So now is when people are going to start buying it because they want that yield, Fitterling's yield. They know DuPont's doing well, and they know the weather's not going to be always bad, so you can't give up on it now.

Katherine Ross: Now, let's talk [crosstalk 00:03:48] about [crosstalk 00:03:48] exactly. But let's talk about the market. Let's talk about the general market, because what are you seeing right now?

Jim Cramer: Well, you know when we get Lyft open, it's going to probably give a lift to the market, I think and we have [crosstalk 00:04:02]-

Katherine Ross: There's the pun, I was waiting for the pun.

Jim Cramer: Yes, maybe momentary, people are heartened by the trade talks, Boeing up again. I need them to stop being heartened by the trade talks. Be heartened by earnings per share.

Katherine Ross: Sit on your hands [crosstalk 00:04:16]-

Jim Cramer: Yeah.

Katherine Ross: Until we really have trade news?

Jim Cramer: No, there's a bunch of stocks that I really like that we're buying. Lam Research yesterday, it was interesting. Lam Research was down three, it's below our basis, and I wanted to buy it but I then got some bad research, which just said someone's going to cut numbers who is a supplier, I mean a customer. So I didn't do it, I didn't pull the trigger and that was a mistake. And you have to understand, why do I talk about mistakes? Because I don't want you to make mistakes.

Jim Cramer: I had a really good handle that, that was the level to buy more Lam, but then I changed my mind, said 174 and it didn't get there. When you look at the opposite Home Depot, Home Depot was falling apart, the stock is falling but we said okay, that's the time to buy a Home Depot. You know, sometimes you just have to say this is the time to buy Lam, but someone came in at the last minute with a piece of information that was contradictory to my view. I listened to that piece of information, and I got it wrong.

Jim Cramer: That's another thing that happens behind the scenes. Remember Katherine, what I'm trying to do is describe what happens behinds the scenes where you get wrong. I mean, what does it matter if you get it right? I mean, you know, Nike [crosstalk 00:05:19]-

Katherine Ross: It's a win.

Jim Cramer: Nike at 82, Home Depot at 180, and Proctor. It doesn't matter. I [crosstalk 00:05:26]-

Katherine Ross: They're all lessons though.

Jim Cramer: Yeah, but I'm trying to teach people that I got a bad piece of information, and that's what kept me from buying Lam. I made a judgment that the person was informed enough and would be right, and the person wasn't. That's the way it works.

Katherine Ross: Going into Monday, what are you thinking about the market?

Jim Cramer: Well, I think that if you're buying the market because a trade deal and you don't get when this weekend, you'll sell it on Monday. I have been saying over and over again, not until we're much further along in the pipeline of the year IPOs when people realize, holy cow, we've been going down because of the IPOs, and that's when we start getting more interesting, okay?

Katherine Ross: All right Jim. Thank you for joining me.

Jim Cramer: Absolutely.

Katherine Ross: We'll see you guys on Monday.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long VIAB, DWDP and LRCX.